US domestic HRC prices continue to tick upward

The most commonly reported spot price transaction range for US domestic hot rolled coil has ticked up by approximately $0.50 cwt. ($11/mt or $10/nt) since our last report a week ago, bringing the new average spot price transaction range to approximately $21.00-$22.00 cwt. ($463-$485/mt or $420-$440/nt), ex-Midwest mill; some sources close to SteelOrbis however, say they believe that deals slightly below this range may still be available to buyers who are interested in booking larger tonnages, others firmly believe that any deals below the current average range will not be around much longer.

US domestic scrap prices are forecast to increase between $20-$30/mt during the April buy cycle; that combined with the still-pending trade case, supports mills’ desire to push prices upward.  “Most of us expect to see a third price increase in early April,” another Midwest source said.  “All in all it just makes sense. It’s certainly not demand based, but the rest of the components are there.”